Trend Indicators

CFED Assets & Opportunity Scorecard

Business Ownership by Gender

Definition

Ratio of the business ownership rate of women to men, 2007. The business ownership rate is defined as the number of businesses in which women or men own 50% or more of the equity, interest or stock of the business as a percentage of women or men in the labor force.

Calculated by dividing the higher value by the lower value, i.e., men-owned business ownership rate divided women-owned business ownership rate.

A ratio of 1 indicates perfect equality; the higher the ratio, the greater the inequality. For example, the business ownership rate of men in New York is 1.4 times higher than for women.

Description

This measure describes the disparity in business ownership between male and female workers. Business ownership is a fundamental engine for wealth creation, but business ownership is more prevalent for men than it is for women. This measure describes the disparity in business ownership between men and women in the labor force. For example, in Rhode Island, men own businesses at a rate 1.5 times higher than women.